Trader Joseph Kim faces jail time following cryptocurrency scheme

November 14, 2018
Darya Karatkevich

In an order issued by the U.S. Commodity Futures Trading Commission (CTFC), Joseph Kim of Arizona has been ordered to repay over a million dollars he lost in a bitcoin and litecoin scheme in 2017. He has also been sentenced to 15-month jail time after pleading guilty to charges of wire fraud brought forward by the U.S. Attorney for the Northern District of Illinois.

Trader Joseph Kim sentenced

From September to November 2017, Kim transferred funds from his company’s account to his own claiming “security issues” for the transfers. After losing the Chicago-based company $601,000, Kim was quickly terminated. In an attempt to repay the funds he lost, Kim lied to clients telling them he left the company in order to open his own firm. After soliciting $550,000 from five investors, Kim eventually lost the funds in high-risk trades.

When investors asked for the balances of their accounts, Kim presented them with falsified versions showing profits rather than dramatic losses. This report comes just a day after the CTFC fined Jacob Bourne for mismarking swap valuations in an attempt to mask heavy trading losses. Both Bourne and Kim have been permanently banned from conducting any future cryptocurrency trades.

Post written by Darya Karatkevich
Darya is a blockchain market observer with 5+ years of experience as an author and editor for major tech blogging platforms. Her fortes are blockchain technologies and solutions, cryptocurrencies and crypto-related regulations.

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